Just got a $21,508.58 margin call (DAY EQUITY CALL)

[Evermore2017]

I have a smaller balance with Ameritrade and even though Thinkorswim said I was in the clear to make one more same day trade, I somehow got flagged with day-trading while under a $25,000 balance (for this particular broker).

I didn't realize that day-trading an option would trigger this, but I fucked up apparently. If I e-mail them that this was a one-time mistake, will they remove the flag from my account? My biggest concern is not meeting the margin call and then getting flagged with other brokers because of this. Otherwise, my account is currently in the black with no other problems.

Why is this even a regulation?

Some brokers reset the PDT status 1 time, just call them, but be careful next time.

 

[ET180]

Why is this even a regulation?

I think that's a good question. It appears to be one of those nanny state regulations designed to protect people from their own judgement. However, the same nanny state would have no issue with me going to my nearest casino and blowing $25k in one night on poker or the state lottery which has far worse odds than playing the stock market. I'm not arguing that it shouldn't exist, but don't understand how state-sponsored gambling is exempt from any kind of limitations. I'd modify the rule to consider only losing trades...maybe something like no more than 3 losing trades in a 3 day period.

 

[Robert Morse]

I think that's a good question. It appears to be one of those nanny state regulations designed to protect people from their own judgement. However, the same nanny state would have no issue with me going to my nearest casino and blowing $25k in one night on poker or the state lottery which has far worse odds than playing the stock market. I'm not arguing that it shouldn't exist, but don't understand how state-sponsored gambling is exempt from any kind of limitations. I'd modify the rule to consider only losing trades...maybe something like no more than 3 losing trades in a 3 day period.

I can argue it should not exist. It does not with futures that are more levered. If I were making the regulations, I would still have one but focus on the leverage. I would allow all DT in a margin account to recycle BP, but accounts under$25K should have 1X, not 2X or 4X. I also think 4X for an account of $25K is too high. To get 4X, the account should be >$50K.

Just my opinion.

 

[zdreg]

I can argue it should not exist. It does not with futures that are more levered. If I were making the regulations, I would still have one but focus on the leverage. I would allow all DT in a margin account to recycle BP, but accounts under$25K should have 1X, not 2X or 4X. I also think 4X for an account of $25K is too high. To get 4X, the account should be >$50K.

Just my opinion.

I would suggest only a test on the effects of leverage.

Just my opinion.

 

[zdreg]

The easiest way to fix this problem is simple, don't be a pleb and lose money.

your advice sounds like the quip from Will Rodgers:" buy only stocks if they go up. if they don't go up don't buy them."

 

[Evermore2017]

I can argue it should not exist. It does not with futures that are more levered. If I were making the regulations, I would still have one but focus on the leverage. I would allow all DT in a margin account to recycle BP, but accounts under$25K should have 1X, not 2X or 4X. I also think 4X for an account of $25K is too high. To get 4X, the account should be >$50K.

Just my opinion.

Agree, and it should apply to forex and futures too.

 

[thaitye]

your advice sounds like the quip from Will Rodgers:" buy only stocks if they go up. if they don't go up don't buy them."

Well, you know it's not bad advice. If you can follow that advice to the T then you will make it at trading .

 

[glbcpa]

You were flagged as a pattern day trader with under $25k. You need to get over $25k or your account will be restricted for what I think is 90 days. When your account is under $25k, at some point there was a warning, but it is the traders job to know this.

TDA does not provide a "warning" per se, they put a little icon next to the account number that says "PDT" and when you're restricted based on margin they put what appears to be an "EM" instead of "PDT". Once you violate the 4 open and closes you are further restricted to closing trades only. And it the 5 BUSINESS days. I got caught in this during the week of July 4 when the market was only open 4 days from Fri to Fri.